S T A T E O F N E W Y O R K
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7902--A
2025-2026 Regular Sessions
I N A S S E M B L Y
April 11, 2025
___________
Introduced by M. of A. SMULLEN -- read once and referred to the Commit-
tee on Cities -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
AN ACT in relation to authorizing the city of Little Falls, in the coun-
ty of Herkimer, to finance certain deficits by the issuance of bonds
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "city of Little Falls fiscal recovery act".
§ 2. The city of Little Falls, county of Herkimer, is hereby author-
ized to issue serial bonds, subject to the provisions of section 10.10
of the local finance law, on or before October 1, 2026, in an aggregate
principal amount not to exceed three million four hundred thousand
dollars ($3,400,000) for the specific object or purpose of liquidating
deficits in its general, golf, and water funds expected at the close of
its fiscal year ending December 31, 2025, including any remaining prin-
cipal amount of any budget, deficiency, and/or revenue anticipation
notes outstanding at the time of such issuance of such serial bonds or
notes authorized pursuant to this act. In anticipation of the issuance
and sale of such serial bonds, bond anticipation notes are hereby
authorized to be issued.
§ 3. Notwithstanding any provision of this act to the contrary, the
city of Little Falls shall not issue any bonds for the purpose of liqui-
dating the deficits described in section two of this act unless and
until the state comptroller shall first review and confirm the existence
of such deficits, as well as certify the amounts of such deficits. The
city of Little Falls shall prepare a report detailing the amount and
cause of such deficits and submit such report together with such city's
independent audit report for its last completed fiscal year, if any such
audit report has been or is to be prepared, and such other information
as the state comptroller may deem necessary, to the state comptroller,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11156-04-5
A. 7902--A 2
as well as the chairs of the senate finance committee and the assembly
ways and means committee, at least thirty days prior to the issuance of
any bonds pursuant to this act. Within thirty days after receiving such
report, the state comptroller shall perform such reviews as may be
necessary to determine the amount of such deficits and report the same
to the chairs of the senate finance committee and the assembly ways and
means committee, the mayor and the common council of the city of Little
Falls. Bonds to liquidate each such deficit shall not be issued in an
amount exceeding such deficit as determined by the state comptroller.
Nothing provided in this act shall prevent the city of Little Falls from
authorizing the issuance of bonds or bond anticipation notes, and issu-
ing bond anticipation notes, prior to the determination of the state
comptroller of the amount of such deficits. If bond anticipation notes
are issued in an amount in excess of the amounts determined by the state
comptroller, the city of Little Falls shall redeem from funds other than
the proceeds of the bonds or bond anticipation notes, such bond antic-
ipation notes in the amount by which the amount of bond anticipation
notes exceeds the amount of such deficits as determined by the state
comptroller.
§ 4. It is hereby determined that the financing of the deficits
hereinbefore described is a purpose of the city of Little Falls for
which indebtedness may be incurred, the period of probable usefulness of
which is hereby determined to be ten years, computed from the date of
such bonds or from the date of the first bond anticipation note issued
in anticipation of the sale of such bonds, whichever date is earlier.
Such bonds and/or bond anticipation notes shall be general obligations
of the city of Little Falls to which the faith and credit of the city is
pledged, and the city shall make an annual appropriation sufficient to
pay the principal of and interest on such obligations as the same shall
become due.
§ 5. (a) For each fiscal year occurring during the time bonds and/or
bond anticipation notes issued pursuant to this act are outstanding, the
mayor of the city of Little Falls shall prepare a quarterly report of
summarized budget data depicting overall trends of actual revenues and
budget expenditures for the entire budget rather than individual line
items. Such budgetary reports shall compare revenue estimates and appro-
priations as set forth in such budget with the actual revenues and
expenditures made to date. All such quarterly budgetary reports shall be
accompanied by recommendations of the mayor setting forth any remedial
action necessary or desirable to resolve any unfavorable budget variance
including the over-estimation of revenues and the under-estimation of
expenditures. Each such quarterly budgetary report shall be completed
within thirty days after the end of each quarter and shall be submitted
to each member of the common council of the city of Little Falls, the
director of the division of the budget, the state comptroller, and the
chairs of the senate finance committee and the assembly ways and means
committee.
(b) For each fiscal year occurring during the time bonds and/or bond
anticipation notes issued pursuant to this act are outstanding, the
mayor of the city of Little Falls shall also prepare a quarterly trial
balance of general and special fund ledger accounts. Each such quarterly
trial balance shall be prepared in accordance with generally accepted
accounting principles. Each such quarterly trial balance shall be
completed within thirty days after the end of each quarterly period and
shall be submitted to each member of the common council of the city of
Little Falls, the director of the division of the budget, the state
A. 7902--A 3
comptroller, and the chairs of the senate finance committee and the
assembly ways and means committee.
(c) Within ninety days of the issuance of any debt pursuant to this
act and for each fiscal year thereafter during which such debt or any
debt incurred to refund such debt is outstanding, the mayor of the city
of Little Falls or other officer or officers responsible for the prepa-
ration of the tentative budget of the city of Little Falls, within thir-
ty days after the final adoption of the budget for the next succeeding
fiscal year, shall prepare a three-year financial plan covering the next
succeeding fiscal year and the two fiscal years thereafter. Such finan-
cial plan shall, at a minimum, contain the information required to be
provided in a three-year financial plan as prescribed by subdivision 10
of section 54 of the state finance law. Copies of such financial plan
shall be provided to the mayor and chief fiscal officer of the city of
Little Falls, the director of the budget, the state comptroller, the
chair of the assembly ways and means committee and the chair of the
senate finance committee.
(d) For each fiscal year occurring during the time bonds and/or bond
anticipation notes issued pursuant to this act are outstanding, the
mayor or chief fiscal officer of the city of Little Falls shall notify
the state comptroller at least fifteen days prior to the issuance of any
bonds or notes or entering into any installment purchase contract and
the state comptroller may review and make recommendations regarding the
affordability to the city of Little Falls of any such proposed issuance
or contract. The state comptroller may require the submission by the
city of Little Falls of such information as the state comptroller shall
deem necessary to complete such state comptroller's review.
§ 6. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby the intent of the legisla-
ture that this act would have been enacted even if such invalid
provisions had not been included herein.
§ 7. This act shall take effect immediately.